My neighbors house is going up for auction in a few weeks. Can anyone tell me what to expect? Appraised at $83

Question

The appraised value is actually about $117,000. House bought 5 years ago for $101,000. What should I expect the sale to be in $ amount? Also has two leans on it one oil other electric(utility)

Answer 1

If you buy the house on the court house stairs you are taking great liability. Because you will be responsible for all liens and seconds on the house. Outwardly it may look like a great deal but more often then not there is something lurking in the wings ready to bite you. Wait till the house goes back to the bank then buy it as a repo with a reputable agent. Contact me for a referal to someone in your area. Remember it cost you NOTHING to hire a buyers agent to care for your intrests. The agent collects his fees from the seller.

Answer 2

Yes the house will be auctioned off, with $83,000 looks like the minimum first bid.

After the auction a new person will own the property, if not whom ever is selling it will retain ownership.

If this is a foreclosure auction it normally take place a place other than the property.

If this is not a foreclosure auction the auction might take place at the site. If more than one property is being sold then the auction will take place some place other than the property.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

Expect that the lender will take it back. They do in my area about 95% of the time.

The bidding may start at 2/3's of the appraised value, but the borrowers usually owe more than the property is worth and the lender will be the high bidder so that they can attempt to market the home for maximum recovery.

If you are even thinking of bidding, you need to have a title search done. If their are tax liens and such, they may not be released even if you are the successful bidder. Liens attach to property at a point and time and if you bid the property, you will be buying it subject to any liens on the property.

You would do well to consult with an attorney to be sure you are not getting caught up in someone elses mess.

I have read that the auction is the riskiest time to buy the property.

Good luck.

Answer 4

the leins must be paid off- the bank will want their money due on the mortgage---then the bidding can start---then if no one bids enough--usually the bank will back the mortgage-hold it for awhile-and try all over again....